Sao Paulo, Brazil, May 18, 2021—A new investment will help boost financing for climate-friendly projects in Brazil, especially in the energy sector. IFC, a member of the World Bank Group, is providing a loan of up to $120 million to Sicredi to help diversify the country's energy matrix, promote sustainability, and support the nation's climate goals.
IFC's green loan will strengthen Sicredi's climate finance program, with a focus on photovoltaic (PV) energy projects in Brazil. This will allow the cooperative financial institution, with more than five million members, to finance renewable energy projects, promoting more sustainable practices in energy use.
IFC's green loan will strengthen Sicredi's climate finance program, with a focus on photovoltaic (PV) energy projects in Brazil. This will allow the cooperative financial institution, with more than five million members, to finance renewable energy projects, promoting more sustainable practices in energy use.
This is the first transaction of a Brazilian cooperative financial institution to receive the certification issued by the Climate Bonds Initiative (CBI), an international organization that works to promote investments in the low carbon economy, establishing the best practices for the market in terms of the environmental integrity of the green economy products.
"The seek for eco-efficient initiatives, such as the use of renewable energy, is in line with a global movement in search of reducing greenhouse gas emissions, to which we are engaged at Sicredi. We always look for alternatives so that our associates have access to credit quickly and safely to support their sustainable projects and, at the same time, we are creating solutions to also make our operations even more sustainable ", says João Tavares, executive president of the Banco Cooperativo Sicredi.
The financing package, also under the internationally recognized Green Loan Principles, is in alignment with the government's commitment to promote sustainable finance and develop a low-carbon, climate-resilient economy. GLP-compliant loans are transparent and assure investors, helping them avoid "green washed" investments. In addition, IFC will provide Sicredi—an IFC client since 2013—with climate-related guidance and tools to identify, monitor and report green assets.
"IFC's strategic priorities in Brazil include helping the country align its growth with the challenges of environmental goals. We are confident that by introducing an instrument to finance green assets, the green loan will boost the sustainability of the Brazilian financial sector. The project is further expected to encourage other financial institutions in the country to explore Green Loan Principles as an alternative tool to grow their green portfolios, thus ensuring inclusive and sustainable development in Brazil.", said Carlos Leiria Pinto, IFC' Country Manager in Brazil.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
About Sicredi
Sicredi is a cooperative financial institution committed to the growth of its members and the development of the regions in which it operates. The Sicredi management model values the participation of its more than 5 million members, who perform the role of business owners. Present nationwide, Sicredi is located in 24 states* and the Federal District, with over 2,000 branches and covering over 300 financial products and services (www.sicredi.com.br).
"The seek for eco-efficient initiatives, such as the use of renewable energy, is in line with a global movement in search of reducing greenhouse gas emissions, to which we are engaged at Sicredi. We always look for alternatives so that our associates have access to credit quickly and safely to support their sustainable projects and, at the same time, we are creating solutions to also make our operations even more sustainable ", says João Tavares, executive president of the Banco Cooperativo Sicredi.
The financing package, also under the internationally recognized Green Loan Principles, is in alignment with the government's commitment to promote sustainable finance and develop a low-carbon, climate-resilient economy. GLP-compliant loans are transparent and assure investors, helping them avoid "green washed" investments. In addition, IFC will provide Sicredi—an IFC client since 2013—with climate-related guidance and tools to identify, monitor and report green assets.
"IFC's strategic priorities in Brazil include helping the country align its growth with the challenges of environmental goals. We are confident that by introducing an instrument to finance green assets, the green loan will boost the sustainability of the Brazilian financial sector. The project is further expected to encourage other financial institutions in the country to explore Green Loan Principles as an alternative tool to grow their green portfolios, thus ensuring inclusive and sustainable development in Brazil.", said Carlos Leiria Pinto, IFC' Country Manager in Brazil.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
About Sicredi
Sicredi is a cooperative financial institution committed to the growth of its members and the development of the regions in which it operates. The Sicredi management model values the participation of its more than 5 million members, who perform the role of business owners. Present nationwide, Sicredi is located in 24 states* and the Federal District, with over 2,000 branches and covering over 300 financial products and services (www.sicredi.com.br).
*Acre, Alagoas, Amapá, Amazonas, Bahia, Ceará, Goiás, Maranhão, Mato Grosso, Mato Grosso do Sul, Minas Gerais, Pará, Paraíba, Paraná, Pernambuco, Piauí, Rio de Janeiro, Rio Grande do Norte, Rio Grande do Sul, Rondônia, Santa Catarina, São Paulo, Sergipe and Tocantins.
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